Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
Approved

Agenda Title:

Approval of a Pre-Development Agreement for the Eastgate Business Park with Salle Real Estate Investments, LLC.
Recommendations:

Council action to enter into the Pre-Development Agreement.
Executive Summary:

Council action is requested to enter into a Pre-Development Agreement for the Eastgate Business Park Project with Sallee Real Estate Investments, LLC.  This agreement will establish the conditions under which the City may provide public incentives in the future to facilitate the construction of an initial industrial building at the northeast quadrant of Little Blue Parkway and RD Mize Road.
Background:

On March 12, 2018, the City Council heard a presentation about a proposed Pre-Development Agreement for the proposed Eastgate Business Park Project.  This action is a follow-up to that discussion.

 

Property owned by Beyond the Horizon LLC, generally located at the northeast quadrant of Little Blue Parkway and RD Mize Road with a street address of 20000 East RD Mize Road, has been identified as a possible site for mixed-use development, including industrial, office and retail land uses. City staff has been working with the Independence Economic Development Council regarding a package of incentives that could be provided to facilitate the construction of the initial 100,000 square foot industrial building on the property.

 

City staff has negotiated a Pre-Development Agreement with Sallee Real Estate Investments, LLC, to coordinate the construction of the light industrial building, parking lot and related improvements, which are being designated as the Phase 1 Project.  This Pre-Development Agreement will establish the parties' understandings and anticipated course of action regarding the proposed Phase 1 Project and the preparation of a more definitive Performance Agreement which would provide for planning, designing, engineering, financing, constructing and operating the Phase 1 Project.

 

The Pre-Development Agreement provides that the City Council may, in the future, consider providing the following public incentives for the Phase 1 Project:

 

1. Tax Abatement - Tax Abatement for 85% of the real property taxes for the Phase 1 Project for a period of 20 years.

2. Public Road Construction, Landscaping and Environmental Testing - City funding and construction of the primary road entrance to the Phase 1 Project, and funding for landscaping and environmental testing, in the combined maximum amount of $964,655.

3. Waiver of Fees - The City will consider waiving fees which are applicable to the Phase 1 Project, which may include grading permit fees, erosion control permit fees, building permit fees, water and sewer tap fees, and the new construction license surcharge.

 

This Pre-Development Agreement does not bind the Council to take these actions in the future, and all future actions to provide these incentives will be subject to the legislative discretion of the City Council.  The Pre-Development Agreement establishes the intended plan of action by the Developer and the City to move forward on the Phase 1 Project.  If this Agreement is approved, City staff will continue to coordinate with the Developer to prepare for the Phase 1 Project, including future Council actions to provide the incentives, and Developer will move forward with a financing plan for the private portions of the Phase 1 Project.



Fiscal Impact:

The City will participate to a maximum of $964,655 for road construction, landscaping and environmental testing.  Public improvements provided by the City will be financed using a combination of potential sources, including the Street Fund, CDBG, and Power & Light Fund.  The specific allocation between these sources will be determined prior to approval of the final development agreement, but it is anticipated one of these three sources of funding, or a combination thereof, will be utilized.



Department:          City Manager's OfficeContact Person:          Mark Randall


REVIEWERS:
DepartmentAction
City Managers OfficeApproved
Finance DepartmentApproved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

ATTACHMENTS:
DescriptionType
Pre-Development Agreement 4.13.18Contract